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The daily journey to work for millions of people isn’t by car or train, it’s
by bus. There are some 3.5
million regular bus commuters in Britain today so the importance of the
service - to them, their employers and the economy - is impossible to
over-estimate.

Transport costs, however, are a real issue for many families, being their
biggest outlay after housing and power. The economy may be starting to
recover but the plight of the working poor and the rising cost of living are
still giving cause for concern.

In these circumstances, the time is right for the government to take action to
make bus commuting more affordable. It is a means of transport that is
particularly important to the poorest, with the National Travel Survey
showing that 48 per cent of the lowest income group and 36 per cent with the
next lowest incomes do not have access to cars.

The introduction of a tax initiative that allowed employees to pay for fares
out of gross income – similar to those already in place for childcare
vouchers and bicycle purchase - would deliver tangible benefits to people
struggling on low wages. The “Bus
Bonus” scheme would also boost the UK economy, according to Greener
Journeys, the sustainable transport group behind the proposal.

The organisation says that the initiative, which is similar to schemes in
Ireland, the US and Canada, would save workers up to £224 a year while
employers would benefit from lower National Insurance contributions. It
would encourage people into jobs and enable them to travel farther to find
work.

Claire Haigh, the group’s chief executive, says: “With the rising cost of
living a key concern, this support would be a huge boost for thousands of
households. We urge the government to adopt the Bus Bonus as soon as
possible to take advantage of the benefits to the economy and job market.”

Greener Journeys, which is backed by leading bus and coach operators, points
out that bus users are hard done by when it comes to government aid. Each
rail journey receives a subsidy of £1.65 compared with 14p per bus trip. Car
commuters who have workplace parking pay no tax on the benefit and those who
cycle can buy bikes tax-free through workplace schemes. The Bus Bonus would
help to redress the balance.

Working with the consultants KPMG, Greener Journeys has developed a
specification that, it says, would be easy to implement. It estimates that
the cost to the Treasury would be £75 million a year, mainly in foregone
tax, but the scheme would deliver £150 million in economic benefits through
job creation and, by encouraging people to switch from car to bus, reduced
congestion, lower noise levels and improved air quality.

The Bus Bonus is one of three core proposals in Bus
2020: A Manifesto for the Next Parliament, which sets out how Greener
Journeys believes the government can harness the potential of the bus as a
catalyst for jobs and growth.

The Bus Bonus would give a well-targeted boost to the jobs market and the
economy, while using the tax system to support those most in need. It is an
initiative whose time has come.